Why Do Energy Companies Dictate Who Can Have Solar?
A California neighborhood with rows of solar-equipped homes, where utility companies still decide how and when systems connect to the grid.
When you put solar on your roof, it feels like it should be your decision alone. After all, you’re paying for the panels, it’s your property, and the sun is free. So why do utilities like PG&E get the final word?
The grid isn’t optional—it’s shared
Electricity flows like water through pipes, but instead of tanks and valves, the grid is one giant, interconnected circuit. Your panels don’t just power your home—they constantly interact with the broader system. If you’re producing extra power, it flows outward. If you need more than you’re generating, you draw inward.
That constant push-and-pull is why utilities oversee interconnection. Before your system goes live, they review your design and issue PTO (Permission to Operate). Without it, your system can’t legally export—or even connect—to the grid.
What if you don’t want to export?
Some homeowners ask: “Can’t I just power my own house and skip the grid entirely?” There are a few paths:
Zero export systems: These are designed to shut off or throttle back when your home isn’t using power, so nothing flows back. Sounds simple, but in practice, it’s messy—tiny leaks almost always occur, and utilities require proof the system won’t destabilize their network.
Hybrid inverters: These can be set to “import only,” but the utility still inspects to confirm they won’t accidentally export.
True off-grid: The only way to bypass utility oversight completely is to physically disconnect from the grid, usually with a large battery bank and generator backup. As one off-grid homeowner in the thread put it: “Not for sissies.”
Why the red tape?
Utilities argue it’s about safety and reliability. Backfeeding power unexpectedly into a downed line can endanger line workers. Poorly configured systems can also overload transformers or destabilize local circuits.
Homeowners, meanwhile, see delays and costs:
Months-long waits for PTO approvals.
Surprise requirements for transformer upgrades—paid for by the homeowner.
Complex rules like NEM 3.0, which utilities themselves lobbied for.
A regulated monopoly problem
Redditors put it bluntly: utilities are regulated monopolies. You can’t shop around for a different grid operator, so the company serving your address makes the rules. They can’t technically stop you from putting panels on your roof, but they absolutely control whether those panels can connect to the grid—and what value you’ll get for the energy you produce.
The bottom line
If you want solar in California, you’re also signing up to work with your utility. The key is going in with clear eyes:
Expect PTO as a required step.
Budget for possible grid upgrades.
Know that “zero export” doesn’t mean “no utility involvement.”
Solar still pays off, but the process runs smoother when your installer knows how to navigate utility red tape. The sun may be free, but access to the grid has a gatekeeper.
References
California Public Utilities Commission – Interconnection Overview: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/distributed-generation/interconnection
PG&E Interconnection Process: https://www.pge.com/en/mybusiness/customerservice/nonpgeutility/renewableenergy/renewables/interconnection/index.page
Vote Solar – Utility Influence on Solar Policy: https://votesolar.org/